Woj Bomb: Celtics Ownership looking to Sell

[Silas]

It's crazy how far the league has come, but the last time there was an expansion team was '04-'05 with the Bobcats, which was also the last time the Celtics sold.

The Bobcats paid an expansion fee of $300m which was agreed to in Jan '03. and the Celtics just sold for $360m a few weeks earlier (Dec '02). I believe the previous two teams to sell were the Mavericks in Jan 2000 for $285m and the Nuggets in July 2000 (the Nuggets were sold in a package deal with the Avalanche and Pepsi Center for $450m, but Forbes says the Nuggets portion was $202m). 

So back then, you had an expansion team going for more than what established teams went for in larger markets a few years earlier, but less than a premier franchise.  Following similar math, if the C's sell for $6b, and considering the Suns and Mavs recently sold for $3.8 to $4b, it makes sense for an expansion team at $5b (and of course the NBA will try to get more if possible).

It is hard to fathom buying a brand new team for $6b when you could just buy the Celtics.  But if the Celtics are saddled with bad contracts, bad arena deal, bad RSN deal, etc. then I guess it could make sense if you're buying a clean slate with more growth potential.

Maybe not such a bad thing if you are the 2nd richest person in the world and want the Celtics.

[Roy H.]

Bill Simmons: In the last few days there?s been some I think legitimate buzz about Jeff Bezos buying the Celtics, and I think it?s real. I think he?s gonna be one of the suitors. Which got me thinking, Jeff Bezos when he?s looking at the Celtics, what is he seeing? What does he want? And I think the only way it makes sense is that it?s one of the crown jewel franchises. That?s why you get it. To him, it would be no different than if you bought this famous gigantic $300 million yacht but I think it?s real that he?s potentially in the mix for this

Bill Simmons: The league wants six billion for the Celtics, six billion, they don?t own their arena, it?s a crazy price but they?re probably going to get it. They want the six billion because they want expansion teams in Seattle and Vegas and then Mexico City?s kind of looming as a third team but they want to get six billion a piece for the two franchises for expansion which would mean a check of $400 million to every NBA owner, all 30. They?re trying to establish a price with the Celtics team and the Celtics themselves the Grousbeck family.

I don't like the guy much, but I have no sense of what his philosophy would be like as an owner.

As for expansion teams, I'm curious:  why would they be valued the same as a top-5 franchise in the NBA?  Especially for a city like Seattle?

If he's more concerned with prestige than making money then it could work out well. I don't know if that's the case, though, and I feel like he would be more interested in owning an expansion Seattle franchise than the Celtics

Agreed on the valuation for an expansion. The Celtics selling for $6 billion would definitely help raise the price for an expansion team, but it should still be significantly lower than the Celtics. Even $5 billion would seem high

While I agree that Bezos; like Paul Allen before him, would most likely target acquiring a local or regional franchise, he might prefer the notoriety of owning a premier franchise instead of having to build one. I briefly worked at Amazon and have met Bezos, and he enjoys building things, so I doubt that?s the case.

As for Seattle being some sort of secondary market, I don?t think that?s true at all. The Seahawks have rabid fan base despite not being a team with a long history of winning. There have been people campaigning for a basketball team since the Sonics were hijacked by the Oklahoma ownership. The WNBA team, the Seattle Storm, has been one of the most successful franchises and is women owned. The Sounder?s football (soccer) club routinely sells out the same stadium that the Seahawks use.

I know west coast teams don?t get as much exposure in the east coast media, but on the west coast it?s an economic powerhouse. I would estimate 25% of the population are east coast transplants with Ivy League education. The Puget Sound has a population of 4.5 million people and there are 11 billionaires and 55,000 millionaires and growing. The millionaire total is number 7 in the US and number 2 by population density. Washington state has a tax revenue of over $100 billion, and that?s without an individual or corporate income tax.

A Seattle franchise is going to be worth a lot if it?s a winning team and will still be financially successful even if it?s not.

They lost a team once and they're not a top-10 media market.  There's no way they should be valued similarly to a top-5 franchise in terms of valuation.

They lost a team because they got railroaded by the NBA, not due to lack of a fan base. Bennet had no intention of keeping the team in Seattle after he bought it and Stern pushed for approval before Steve Ballmer and others had a chance to make a counter offer.

Edit: the main sticking point was a bad arena deal, and there is a new arena available now. The NHL Kraken play there.

As for sports market size, the Boston area is number 8 despite multiple recent championships and Seattle is number 13 despite having a fledgling NHL team and no NBA franchise (Seattle was #12 two years ago but has been passed by Tampa).

https://www.sportsmediawatch.com/nba-market-size-nfl-mlb-nhl-nielsen-ratings/

An NBA team would push them past Tampa Bay at least, and probably others like SF who will be losing the Athletics soon, simply due to the support of the fan base being more enthusiastic and loyal than some of the locations currently ahead of Seattle. Not to mention the wealth and expendable income of that fan base as outlined above.

That?s defined as liquid wealth, and not based off property. For every 12 people walking around Seattle, one is a millionaire. And they support the local sports teams. A Seattle NBA franchise will be worth more than one in Pittsburgh or another secondary market.

But still not close to as much as the most successful team in the NBA in a city with a rabid sports base.

[Kuberski33]

Bezos buying the C's would certainly interesting, especially if he wants to build a stadium.  Personally I wouldn't be excited. Things would likely change. From everything you hear about working for him - I think things could change dramatically from the current operation.

To me anything other than Pagliuca and his group getting the team would be a negative from where we are currently.

[trickybilly]

As much as I loathe Bezos, he didn't really mess with WAPO like some power-crazed self-obsessed/deluded psychopath, like Musk did with Twitter.

Bezos has at least enough acumen to realize that if it ain't broke don't fix it.

I wonder if the interest starts to pick up when Tatum starts going supernova in week 2.

[Kernewek]

As much as I loathe Bezos, he didn't really mess with WAPO like some power-crazed self-obsessed/deluded psychopath, like Musk did with Twitter.

Bezos has at least enough acumen to realize that if it ain't broke don't fix it.

I wonder if the interest starts to pick up when Tatum starts going supernova in week 2.

This is where I sit as well, generally. Not a big Bezos fan but I think his involvement in the day-to-day should be fairly minimal, which is all you can ask from ownership really.

edit: I think a new stadium, built elsewhere, would be a huge shame, as well. Having the Garden so easily accessible to folks up the coast to get to without driving is a very underrated aspect of it's appeal - and it's also much greener (and more fun) than driving.

[Vermont Green]

I don't really care if Bezos buys the Celtics.  At the cost of a sports franchise these days, pretty much every one is going to be owned by someone like him in time anyway.  The stadium aspect of this is getting a lot of talk, with the thinking being that Bezos would build a stadium for the Celtics.  I don't think Boston needs a stadium for Hockey and a stadium for Basketball.  That doesn't make sense to me.  I suppose Bezos could buy the Garden from Jacobs.

Financially, it seems that investing in a sports franchise would be a good diversification for him.  It would only take a few of his 100s of billions to buy it.  I am not sure he has the personal bandwidth to get too involved in the business of the Celtics.  It would probably be better than Henry buying the Celtics.

[green_bballers13]

Why do the Celtics need a new stadium?

[Kernewek]

Why do the Celtics need a new stadium?

The basketball team doesn't, but the business would love it. Why rent a storefront when you can own one?

[celticinorlando]

If he is willing to spend to keep this group together and make the NBA's financial penalties irrelevant then sign me up.

[86MaxwellSmart]

As much as I loathe Bezos, he didn't really mess with WAPO like some power-crazed self-obsessed/deluded psychopath, like Musk did with Twitter.

Bezos has at least enough acumen to realize that if it ain't broke don't fix it.

I wonder if the interest starts to pick up when Tatum starts going supernova in week 2.

I think you have things backwards....Twitter is a much better place now, both sides are represented and we have freedom of Speech....Washington Post is HOT GARBAGE.

[jambr380]

As much as I loathe Bezos, he didn't really mess with WAPO like some power-crazed self-obsessed/deluded psychopath, like Musk did with Twitter.

Bezos has at least enough acumen to realize that if it ain't broke don't fix it.

I wonder if the interest starts to pick up when Tatum starts going supernova in week 2.

I think you have things backwards....Twitter is a much better place now, both sides are represented and we have freedom of Speech....Washington Post is HOT GARBAGE.

Musk has come out and said that the words 'Cis' or 'Cisgender' are considered slurs and you can be suspended for using them. I don't read the Washington Post, but Twitter sucks, especially since it became X. Musk had a meltdown after his biological son came out as a trans woman and is basically the new ambassador for the anti-woke movement. That may appeal to some people, but it's certainly a turn-off for others.

[Donoghus]

As much as I loathe Bezos, he didn't really mess with WAPO like some power-crazed self-obsessed/deluded psychopath, like Musk did with Twitter.

Bezos has at least enough acumen to realize that if it ain't broke don't fix it.

I wonder if the interest starts to pick up when Tatum starts going supernova in week 2.

I think you have things backwards....Twitter is a much better place now, both sides are represented and we have freedom of Speech....Washington Post is HOT GARBAGE.

Musk has come out and said that the words 'Cis' or 'Cisgender' are considered slurs and you can be suspended for using them. I don't read the Washington Post, but Twitter sucks, especially since it became X. Musk had a meltdown after his biological son came out as a trans woman and is basically the new ambassador for the anti-woke movement. That may appeal to some people, but it's certainly a turn-off for others.

It has gotten significantly worse since Musk came out board.

[TheBig3]

As much as I loathe Bezos, he didn't really mess with WAPO like some power-crazed self-obsessed/deluded psychopath, like Musk did with Twitter.

Bezos has at least enough acumen to realize that if it ain't broke don't fix it.

I wonder if the interest starts to pick up when Tatum starts going supernova in week 2.

I think you have things backwards....Twitter is a much better place now, both sides are represented and we have freedom of Speech....Washington Post is HOT GARBAGE.

At the very least haven't notice any change with the exception of the name and not being used as a political tool anymore.

[Donoghus]

Why do the Celtics need a new stadium?

The basketball team doesn't, but the business would love it. Why rent a storefront when you can own one?

Crazy to the think the New Garden will be 30 years old next year. 

They've actually done a solid job at maintenance/upgrades over the years.

[Kuberski33]

Why do the Celtics need a new stadium?

They don't necessarily need one. But if they sell for a record price, whoever pays it could very well want to control as much of the revenue from game days as possible. Which means you want to own the surrounding businesses where fans eat and drink before an after games. You also want to control parking and maximize revenue from your arena.

Also whoever gets the team may not share the fans affinity for the current venue. How many arena's and stadiums across the country have made it past 40 years old?

I'm not saying it will happen, but it very well could.